Where to cash an EE bond depends on how old it is and who issued it

You can cash an EE savings bond at a bank, credit union, or the U.S. Treasury. The fastest route is usually your own bank—most will cash them same-day if you have an account there. If you don't have a bank account or your bank won't cash it, the Treasury will mail you a check within a few weeks. Paper bonds issued before 2012 and digital bonds purchased through TreasuryDirect both cash the same way; the method just depends on where you want to go and how quickly you need the money.

Before you cash any bond, check its issue date. EE bonds must be held at least one year before you can cash them. If you cash one before five years have passed, you lose the last three months of interest as a penalty. After five years, there is no penalty, and you keep all the interest earned.

Key Takeaways

  • Your own bank is the fastest option if you have an account there; most will cash EE bonds same-day without a fee.
  • EE bonds must be at least one year old to cash, and cashing before five years costs you three months of interest.
  • For paper bonds, bring the bond itself plus a photo ID; for digital bonds, you redeem them directly through TreasuryDirect online.
  • If your bank won't cash a paper bond, the Treasury will send you a check, but the process takes several weeks.
  • You will owe federal income tax on the interest when you cash the bond, though you can defer that tax if you roll the money into an education savings account.

Cashing a paper EE bond at your bank

Bring the physical bond and a government-issued photo ID to any branch of your bank or credit union. The teller will verify the bond's serial number and your identity, then deposit the cash into your account or give it to you in cash. Most banks process this same-day. You do not need an account at that bank to cash a bond there, though some banks may charge a small fee if you are not a customer—call ahead to ask.

If the bond is in both your name and someone else's name (a co-owner), both of you must be present to cash it, or the co-owner must sign a power of attorney form. If the bond is in a child's name, a parent or legal guardian can cash it by bringing the child's birth certificate or Social Security card along with the bond and their own ID.

Redeeming a digital EE bond through TreasuryDirect

Digital bonds purchased through TreasuryDirect are redeemed entirely online. Log into your TreasuryDirect account, navigate to the "Manage My Securities" section, and select the bond you want to redeem. Click "Redeem" and confirm the transaction. The Treasury will deposit the money into the bank account you have on file, usually within one to two business days.

You must be the account owner to redeem a digital bond online. If someone else owns the bond (such as a parent who bought it for a child), that person must log in and redeem it themselves. If the account owner has died, the executor or beneficiary will need to contact the Treasury directly at 844-284-2676 to process the redemption.

What to do if your bank won't cash the bond

Some banks, particularly smaller ones or credit unions, do not cash savings bonds. If your bank declines, you can mail the bond directly to the Treasury. Send the bond, a completed FS Form 1522 (Request to Redeem Series EE Savings Bonds), and a copy of your photo ID to the address listed on the Treasury's website. Include a letter stating the bond's series, denomination, and serial number.

The Treasury will verify the bond and mail you a check. This process typically takes two to four weeks from the date they receive your package. Use certified mail with tracking so you have proof of delivery. Do not send the original bond through regular mail; certified mail is safer and gives you a record if the package is lost.

Understanding the tax on the interest you earn

When you cash an EE bond, you owe federal income tax on the interest it earned. You do not pay tax on the original amount you paid for the bond—only on the gain. The Treasury will not withhold this tax automatically; you will report it yourself when you file your tax return for the year you cashed the bond.

If the bond earned $500 in interest and you cashed it in 2024, you will report that $500 as income on your 2024 tax return. You do not owe state or local income tax on savings bond interest, only federal tax. Keep the redemption statement the Treasury or your bank gives you; you will need it to file your taxes accurately.

Deferring taxes by rolling the money into education savings

If you cash an EE bond and use the money for may have access to education expenses in the same year, you may be able to avoid federal income tax on the interest entirely. This works only if the bond was issued after 1989, is in the name of the person paying the education expenses, and the money goes toward tuition, fees, or room and board at an accredited school.

You must report the redemption on IRS Form 8815 (Exclusion of Interest from Series EE U.S. Savings Bonds Issued After 1989) when you file your taxes. The education expenses must occur in the same tax year as the redemption. If you redeem the bond in December 2024 but pay tuition in January 2025, the tax deferral does not apply. Consult a tax professional if you think this option fits your situation, because the rules have specific requirements.

What happens if the bond is lost or destroyed

If a paper EE bond is lost, stolen, or damaged beyond recognition, you can request a replacement from the Treasury. File a claim using FS Form 1048 (Claim for Loss of Stolen U.S. Savings Bonds) and mail it to the Treasury along with any documentation you have—the original receipt, a bank statement showing the purchase, or correspondence from the Treasury.

The Treasury will investigate and, if they confirm the bond was issued in your name, issue a replacement bond with the same issue date and value. This process can take several months. If the bond has matured (stopped earning interest), the Treasury may offer to redeem it instead of replacing it. Keep your purchase receipts and any Treasury correspondence in a safe place to speed up this process if needed.

Frequently Asked Questions

Can I cash an EE bond before it reaches final maturity?

Yes. EE bonds can be cashed anytime after one year of ownership. If you cash before five years, you lose the last three months of interest. After five years, you keep all interest earned. Final maturity is 30 years, but you do not have to wait that long.

What if I lost the bond but still have the receipt?

A receipt alone is not enough to cash the bond. You will need to file a claim for loss using FS Form 1048 and provide documentation like bank statements showing the purchase. The Treasury will investigate and issue a replacement if they confirm the bond was issued in your name.

Do I have to report the interest when I cash the bond?

Yes. You owe federal income tax on the interest earned. Report it on your tax return for the year you cashed the bond. You do not owe state or local tax on savings bond interest. Keep your redemption statement for your records.

Can someone else cash my EE bond for me?

Only if they have power of attorney or are a legal guardian. For digital bonds in TreasuryDirect, the account owner must redeem it themselves. If the owner has died, the executor or beneficiary must contact the Treasury directly.

How long does it take to get my money after I redeem a digital bond?

The Treasury deposits the money into your bank account within one to two business days of redemption. Paper bonds cashed at a bank usually clear same-day. Bonds mailed to the Treasury take two to four weeks.